Auction market slumps 59.7% in 1H2023, lowest sales value in three years: Edmund Tie
The “high-value deal” was for a three-storey semi-detached residence on Vaughan Street that was transacted for $6.3 million. In addition, 7 of the profitable properties sold at marketplace were industrialized properties, with the remainder being 3 houses and even an office property.
” Additionally, on the back of the high interest rates, the cooling down measures released in April plus the general uncertain macro setting, customers have usually followed a wait-and-see posture,” claims Tan.
Cognisant of the upcoming new exclusive non commercial assignments set to strike the market over the following few quarters, prospective purchasers are keeping back on their purchases, claims Tan, including that external variables including worries of an upcoming economic downturn together with higher interest rates are even affecting sales.
Looking ahead, she expects to see home loan listings pick up only in 2024, given the time lag in between banks retrieving residential properties as well as placing them up for public sale. She also projects commercial listings to garner more purchasing interest. “Given that business deals will not acquire additional buyer’s stamp duty and with the rise in family offices in Singapore, well-priced office listings will also likely be extremely demanded,” she says.
The local real property auction sale marketplace effectively offered 11 properties over the very first six months in this year. An analysis note posted by Edmund Tie states that the overall transaction worth for the successfully auctioned real properties was $15.2 million.
She incorporates that over the past couple of months, investors are presenting an increasing acceptance towards leasehold properties with much shorter remaining lease periods of usually 30 to 60 years. “This is likely as a result of financiers’ higher chance tolerance, as economic markets continue to be volatile, and also a noticeable choice shift to different investment chances.”
According to Joy Tan, head of sell-off and sales at Edmund Tie, the low sales worth in 1H2023 was because of “the real estates pounded being of lowered quantum, primarily possibly beneath or simply past the S$ 1 million mark. There was sole high-value deal that was over S$ 5 million”.
This was the lowest sales price reported by the auction sale market ever since 1H2020, the onset of the Covid-19 pandemic, the moment just one real estate was yielded $0.94 million. It is also a significant decline of 59.7% matched up to 2H2022 which logged 17 sales cost $37.7 million.
